In this post, Chris Anderson notes that P2P file sharing increases the sales of unknown artists, but decreases the sales of well known artists. From this perspective, P2P can be seen as perhaps the ultimate disruptive force for any record label looking to break into the digital music market. Consider:

1. Record labels currently make the bulk of their revenue off a handful of acts. As such, they are constantly looking for "the next big thing."

2. Because they are highly dependent on popular acts, they are afraid of P2P business models, as such business models are not in line with the resources and value system record labels currently have.

One of the golden rules of disruptive innovations is to find an area where the incumbent cannot profitably compete, and develop a core competence along those lines. As such, record labels looking to break into the market may look to explores P2P business models to fuel their success, and to dethrone record labels that currently dominate the music publishing and recording industry.

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